Market Analysis: Inside The Up & Down Swings

[inthemoneystocks]

Stocks are trading flat today after a three day rally. The markets have been in a constant pattern of falling sharply for a few days, then a move takes place to the upside that briefly makes a new high on the S&P 500. Then another fall takes place. This is the classic signal of distribution (institutional selling). Large investors slowly selling the market as the average investor is buying. Based on this pattern, the markets should start to pull back in the next few days. A larger breakdown will occur when the S&P 500 takes out 1,835 level on a closing basis.

The pumping continues to keep the markets up. This comes from the Federal Reserve as well as large institutions. As the markets were falling late last week, word 'trickled' down that stimulus may be pumped into China, Japan and Europe. This helped the markets recover. Next, early this week Janet Yellen said the jobs market would continue to be weak, therefore the Federal Reserve would continue to pump money into the system for an 'extended' period of time. This 'pumping' of market sentiment creates the scam or 'rigged' markets that every investor should be aware of. While these big institutions sell into the small buyers, they are the ones spreading rumors to keep the market propped up. The Federal Reserve is either complicit in this pumping or totally oblivious. Make your own decision. This is the exact reason why average Americans do not want to invest any longer. They buy the highs before a major collapse and sell the lows before the markets run higher. The emotional rollercoaster is perpetuated by the 'big boys'. It is essentially a pump and dump on a monster scale.

Gareth Soloway
InTheMoneyStocks